Larry McDonald, from the Canadian Business Blog reports on William Bernstein's new book, The Investor’s Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between.
Bernstein’s distaste for financial services industry as strong as ever: “If rigorous precautions are not taken, the financial services industry will strip investors of their wealth faster than they can say ‘Bernie Madoff …The average stock broker services his clients in the same way that Baby Face Nelson serviced banks … Unlike your doctor, lawyer, or accountant, your broker is not a ‘fiduciary’: that is, he is under no legal obligation to place your interest above his … Don’t come anywhere near a stock broker or brokerage firm; sooner rather than later you will get fleeced … Do not invest with any mutual fund family that is owned by a publicly traded parent company.”
Bernstein's quote is a bit harsh, but so many professional advisors and money managers are out to take their commissions, and sell anything that you will buy, that you cannot easily tell the difference between the ethical advisors and the others.
The lack of fiduciary responsibility tells me these 'advisors' are salespeople first, and someone who cares about helping you, last.
Charles of The Kirk Report has some excellent thoughts on what winners do to win.
One of the things I continue to notice not only within my own trading circle of friends who trade for a living but also within my mentorship group is that the traders who outperform everyone else have an above average tendency for very strong comebacks. In other words, after they have a bad trade, the next trade is good. After they have a bad day, the next day they have a great day. After they have a bad week, the next week they have an even better week. And so on. Time and time again…
The best traders know and expect mistakes will happen but realize that if they're going to win, they need to follow up every mistake with a great trade. However, you can't do that if your mind and emotions are in the wrong place which is why not only having the right skills is important, but your attitude and confidence in yourself and in your strategy will play a more significant role in your ultimate success than you may currently understand and believe. And, that only comes through tireless practice and devotion to your game.